Employee Social Contributions
With very few exceptions, every person over the age of 18 who works in Canada outside of Quebec and earns more than a minimum amount (C$3,500 per year) must contribute to the Canada Pension Plan.
Effective for 2024, the CPP contribution rate for employees is 5.95%. Effective starting in 2024, employees are assessed an additional CPP tax rate of 4%. The CPP maximum pensionable earnings applicable for the additional CPP tax rate is C$ 73,200.
Effective for 2024, the QPP base contribution rate for employees is 5.4%.
Employees and employers each are assessed a second additional QPP contribution of 4% on the amount of annual employment income exceeding the original earnings limit and up to an additional earnings limit, also known generally as the QPP additional maximum pensionable earnings.
Effective for 2024, the QPP additional maximum pensionable earnings applicable for second additional contributions is C$73,200.
All employees must contribute Employment Insurance premiums. Effective for 2024, the standard EI tax rate for employees is 1.66% . The EI tax rate for employees who are residents of Quebec is 1.32%
Employees are subject to Quebec Pension Plan and Quebec Parental Insurance Plan contributions if they work in Quebec or are paid from a business location in Quebec.
Quebec employees are assessed a QPIP rate of 0.494%